In a substantial display of goodwill towards Greece, Ankara called
yesterday for the settlement of all Aegean disputes between the two
countries by peaceful means, proposing a high-level meeting between the
two foreign ministries before the end of March.

Turkey proposed a five-point set of suggestions to the Greek
government to solve existing problems. Foreign Minister Ismail Cem
presented the Turkish proposal to the Greek Ambassador to Ankara,
Dimitris Nezeritis, with a verbal note. The UN secretary-general, the
NATO secretary-general and NATO members have also been informed about
the initiative. Speaking at his meeting with Ambassador Nezeritis, Cem
expressed his hope that Greece "would also display that it is as
peaceful and conciliatory as Turkey". But Greek government spokesman
Dimitri Reppas, in commenting on the proposals, did not sound very
encouraging. Some of the propoals "are already the subject of dialogue"
he said giving as an example the dialogue on developing and implementing
confidence-building measures in the Aegean within the framework of NATO.
Reppas also said that the only problem between Turkey and Greece in the
Aegean was that of the continental shelf. He did not comment on the
proposal for a meeting before the end of March. /All papers/

On his way to Ukraine, Prime Minister Mesut Yilmaz told reporters
yesterday that the possibility of the establishment of an independent
Kurdish state in northern Iraq is Turkey's main concern. "We should be
prepared for such a development and must be alert" Yilmaz said. He also
noted that the US is well aware of Turkey's concerns. The prime
minister told reporters that Turkey's border with Iraq is completely
under control. In a related development, Deputy Prime Minister Bulent
Ecevit said he had been assured by the US that there is no plan to
establish a Kurdish state. "I will take their word for it" Ecevit said.

Meanwhile, British Ambassador to Ankara David Logan made a written
statement yesterday. The statement referred to the statement made by
British Foreign Secretary Robin Cook in the British Parliament on
February 12. "We support the territorial integrity of Iraq and would
like to see it rejoin the international community" Cook said. /Sabah/

Turkey and Albania took a step towards accelerating bilateral ties
yesterday by signing an agreement of cooperation and political
solidarity. An agreement on mutual cooperation between the two
countries' customs administrations was also signed. Speaking after the
signing ceremony, President Suleyman Demirel and his Albanian
counterpart, Rexhep Meidani, expressed pleasure over the current state
of relations between the two countries and pledged to further improve
them.

Earlier in the day, Meidani held talks with Parliament Speaker
Hikmet Cetin and Chief of General Staff Gen.Ismail Hakki Karadayi. The
Albanian president was accompanied by Albanian Foreign Minister Paskal
Milo, Economy Minister Yili Bufi, Chief of General Staff Alex Andoni and
other high-level officials and businessmen. /All papers/

Twenty-three people were reported injured when two commuter trains
collided between Pendik and Kaynarca just west of Istanbul yesterday
morning. Those wounded were taken to nearby government and private
hospitals for treatment. /All papers/

Administrative court No.1 in Ankara annulled the privatization of
12 power plants yesterday. After the announcement of the court verdict,
the Chamber of Electrical Engineers released a statement, pointing out
that the court's decision would be the first step towards cancelling the
privatization of the electrical power distribution network. The release
also said that the Energy Ministry should stop the practice of illegal
privatization initiatives. /All papers/

The European Union (EU) Commission has stated that it will extend
financial support to 22 Non-Governmental Organizations in Turkey for
human rights and democratization programmes. A statement made by the EU
Commission Representation in Turkey said that the financial support
would be extended within the framework of the MEDA project, which
supports reforms to be realized in the economic and social structures of
Mediterranean countries which are not EU members. The statement noted
that the total cost of the projects amounted to $7-13 million and that
the EU Commission would meet a $5 million part of it. /Hurriyet/

Prime Minister Mesut Yilmaz said that meetings with IMF could start
in March. In a statament while going to Ukraine by plane, Yilmaz noted
that meetings with the IMF were not cancelled, only postponed. He said:
"There are some steps that we should take. Now we are trying to achieve
them. Meetings can re-start in the middle or at the end of March".
/Hurriyet/

In Germany, where PKK terrorist Kani Yilmaz was recently released,
a pro-PKK stance is becoming increasingly prevalent. Security measures
at the Turkish Official Representation Bureau in North Rhine Westphalia,
have been eased on condition that "The PKK is not a threat anymore".
Guards stationed at the Turkish Consul-General have been withdrawn by
German police authorities. /Hurriyet/

Turkish Airlines (THY) will start flights to Tataristan's capital
of Kazan by February 16, the Anatolia news agency reported on Wednesday.
THY said in a written statement that flights to Kazan will be on Mondays
and Thursdays.

Chinese Ambassador to Ankara Yao Kuangyi on Wednesday called on
Turkey to revive economic relations with China, adding that trade volume
between the two countries, now standing at $600 million is not enough in
view of the two countries' potential. Speaking to an Anatolia news
agency correspondent, Kuangyi said that the visit of Foreign Minister
Ismail Cem to China, which will start at the weekend, will be mainly
concerned with economic issues.

Saying that "we wish to set up more strong and permanent relations
with Turkey", the Chinese Ambassador pointed out that the two countries
play an active role in the Middle East and added that their interests do
not conflict in economic and other areas. Foreign Minister Cem is
expected to hold contacts in Beijing for the first two days and meet
Chinese Deputy Prime Minister and Foreign Minister Qian Qishen on
February 16. Cem will later proceed on to Shanghai, which is in the
most important economic region of China, and seek ways to improve
economic cooperation between the two countries.

During an "Annual Conference and Trade Fair" organized by the
Turkish-American Business Council to be held on 25-28 February in
Washington, Turkish-American relations will be taken up. During the
meeting, the fields of telecommunications, tourism, energy, banking,
finance, aviation, culture, food and agriculture will be discussed.
This year Turkish Telecom, 34 % of shares of which are envisaged to be
privatized, will be offered to leading US investors. Head of the
Privatization Administration, Ugur Bayar, and Deputy General Director of
Turkish Telecom, Mustafa Horata, will also attend the meeting.
/Milliyet/

Turkey paid out $393.7 million in foreign debts between 2-11
February. Thus, the total of foreign debts paid out by Turkey since the
beginning of this year amounts to $1.7 billion. Meanwhile, Central Bank
foreign exchange reserves increased by $177 million and reached $20.037
billion on 6 February. /Milliyet/

US Ambassador to Ankara, Marc Parris, who went to Sanliurfa to
participate in a meeting also attended by officials from US
municipalities, said that they also did not want a war in the Gulf.
Noting that people living in Southeast Anatolia suffered a lot during
the 1991 Gulf War, Parris said: "Diplomatic efforts are continuing.
Many countries, including Turkey, do not want a war in the region. We
want Iraq to comply with UN resolutions. If it does not, we will not
hesitate to take action". /Milliyet/

The Clinton administration continued its traditional support for
Turkey's right to enter northern Iraq in order to fight the PKK
terrorist organization. The PKK has been fighting the Turkish state
since 1984 in an effort to establish an independent Kurdistan and is on
the US State Department's "foreign terrorist organizations" list.

US State Department spokesman James Rubin in reply to a question
said, "Turkish forces have entered northern Iraq for limited periods in
the past to destroy bases and arms caches of the terrorist PKK
organization. We have consistently supported the right of the Turkish
government to defend itself against terrorism, as long as any incursions
are limited in scope and duration, and fully respect the rights of the
civilian inhabitants in the region."

He added, "The United States recognizes Turkey's very real security
concerns and its desire to avoid a repeat of the massive influx of
refugees seen in 1991. We want to work constructively with the
government of Turkey on these issues. We have no information on such an
operation or a refugee movement of that kind. Should the question
arise, we will consult with the government of Turkey regarding a proper
response." /All papers/

Minister of Communications, Necdet Menzir, said that the
conventional concept of state will be replaced by a new concept of state
in which electronic devices will have much more influence, adding that
Turkey should take the necessary steps towards the information age.
Menzir returned home yesterday after participating in a conference on
"Information Technology in the State and Education in the 21st century"
organized by the Microsoft software computer company in Seattle, north
America, where he was invited by Bill Gates. Menzir said that he had
met with Bill Gates and also visited the Boeing aircraft firm.
/Hurriyet/

The Lloyd Company, one of the leading British insurance companies
yesyerday declared that there was no reason for considering investments
in Turkey as "risky" because of a probable gulf war. A high ranking
director of the company, Keith Harris, in a statement to Cumhuriyet
daily newspaper noted that British companies with commercial connections
with Turkey would not be damaged by the critical situation in the
region, and stressed the impossibility of a risky situation developing
that these companies should feel concern about.